Roundup: Chicago agricultural commodities end mixed over trading week

CHICAGO, May 5 (Xinhua) --- Chicago Board of Trade (CBOT) agricultural commodities closed mixed over the trading week which ended May 4, with soybean futures dropping nearly 2 percent amid trade concerns.

The most active corn contract for July delivery rose 7.75 cents weekly, or 1.94 percent, to 4.0625 dollars per bushel. July wheat delivery added 27.75 cents, or 5.57 percent, to 5.2625 dollars per bushel. July soybeans dropped 19.5 cents, or 1.85 percent, to 10.3675 dollars per bushel over the week.

CBOT corn futures found new multi-month highs amid expanding drought in Brazil, a rained slowed harvest in Argentina and new fund investment.

Analysts suggest Black Sea area corn planting will be steady or even lower as more resources are put into oil seed production. No material change in Brazilian dryness is indicated in the next two weeks. Argentine yield reports through early May have been disappointing, and the U.S. Department of Agriculture's already-low production forecast is still 0.5-1.5 million tonnes too high.

The loss of crop in South America and the loss of acres in the United States are structural issues and traders remain patient extending sales.

Chicago wheat futures surged to gains of 27.75 cents, as global cash prices moved upwards amid developing dryness in Ukraine and Southwest Russia. Any sign of improved world weather patterns will trigger rapid and severe premium extraction in wheat.

Following the historical dryness in the U.S. Western Plains and Australia, and as Argentine planting will be slowed into late month by excessive rainfall and flooding, there's little room for error with respect to Black Sea production.

Already major exporter stocks will be down some 10-12 million tonnes assuming trend yield. Analysts suggest the market has found a new level of fair value, with July futures ranging between 5.00-5.60 dollars per bushel.

The world still has huge old crop stocks that need to move. The forecasts offer better rains for the Black Sea next week.

Soybeans marked weekly highs on Monday, and spent the rest of the week trading lower as traders waited news on China's consultations with the United States on some issues in their economic and trade.

Although the two countries reached agreements on Friday, analysts expect that Chinese trade and record large fund length in soy meal will hang over the market before the May World Agricultural Supply and Demand Estimates(WASDE) report released by U.S. Department of Agriculture.

Soybean planting progress has advanced across the Central U.S. Midwest, while progress in other areas is just beginning. Analysts look for U.S. soybean planting progress through Sunday to be 10-12 percent completed, near 5-year average. Enditem